10/6/2018

FOOTWEAR INDUSTRY REPORT

Copyright © GLO-BUS Software, Inc. All rights reserved.

Industry 33 Saturday, October 6th, 2018 Year 10

Year 10 Scoreboard

Investor Best-In-
Expectation Industry Overall
Rank Company Name Score Score Score

1 A Company 100 100 100

1 B Company 100 100 100
1 C Company 100 100 100
1 D Company 100 100 100
1 E Company 100 100 100
1 F Company 100 100 100
1 G Company 100 100 100
1 H Company 100 100 100
1 I Company 100 100 100
1 J Company 100 100 100
1 K Company 100 100 100
1 L Company 100 100 100

Game-To-Date Scoreboard

Investor Best-In- Overall

Expectation Industry Overall Bonus G-T-D
Rank Company Name Score Score Score Points Score
1 A Company 100 100 100 0 0
1 B Company 100 100 100 0 0
1 C Company 100 100 100 0 0
1 D Company 100 100 100 0 0
1 E Company 100 100 100 0 0
1 F Company 100 100 100 0 0
1 G Company 100 100 100 0 0
1 H Company 100 100 100 0 0
1 I Company 100 100 100 0 0
1 J Company 100 100 100 0 0
1 K Company 100 100 100 0 0
1 L Company 100 100 100 0 0

Investor Expectation ——– Investors and company boards of directors have established annual targets for five key performance measures and
Score (I.E.) the importance weighting of each: EPS (20 points), ROE (20 points), Stock Price ( 20 points), Credit Rating (20
points), and Image Rating (20 points). Pages 2 and 3 of this report show the investor expectation targets (in
parenthesis just under the column heads for each year). The investor expectation score on a performance
measure is equal to the percentage of the target that was achieved. Achieving higher than targeted performance
results in additional awards of 0.5% for each 1% overachieved (capped at 40% over the target). Thus the investor
expectation score ranges from 0 to a max of 120 (if all targets are exceeded by 40% or more).

Best-In-Industry —————— This scoring standard is based on how well each company performs relative to the best-performing company in the
Score (B-I-I) industry on EPS (20 points max), ROE (20 points max), Stock Price (20 points max), Credit Rating (20 points max),
and Image Rating (20 points max). In order to get a score of 100 a company must be the best performing company
in the industry on all five measures, achieve no lower than the investor expectation on EPS, ROE, Stock Price, and
Image Rating, and have an A+ Credit Rating.

Overall Score ———————– This measure is used to determine each company's ranking in the Year 10 Scoreboard and the Game-To-Date
Scoreboard above. The overall score is calculated by combining the Investor Expectation Score and the Best-In-
Industry Score into a single score using the 50%-50% weighting as specified by the course instructor.

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INDUSTRY 33 COMPANY PERFORMANCE OVERVIEW YEAR 10

Earnings Per Share ($)

EPS scores are based on a 20% or 20 point weighting. Bold numbers indicate achievement of the investor expected EPS shown below each
yearly column head. Best-In-Industry performers earn a top score, and scores of other companies are a percentage of the industry-leading
EPS performance. Game-To-Date scores are based on a weighted average of the annual EPS performances.
Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Wgt. Avg. Y10 Score G-T-D Score
(2.67) (2.85) (3.05) (3.26) (3.49) (3.66) (3.84) (4.03) (4.23) (4.44) (2.67) I.E. B-I-I I.E. B-I-I

A 0.00 20 20 20 20 A
B 0.00 20 20 20 20 B
C 0.00 20 20 20 20 C
D 0.00 20 20 20 20 D
E 0.00 20 20 20 20 E
F 0.00 20 20 20 20 F
G 0.00 20 20 20 20 G
H 0.00 20 20 20 20 H
I 0.00 20 20 20 20 I
J 0.00 20 20 20 20 J
K 0.00 20 20 20 20 K
L 0.00 20 20 20 20 L

Return on Equity (%)

ROE scores are based on a 20% or 20 point weighting. Bold numbers indicate achievement of the investor expected ROE shown below
each yearly column head. Best-In-Industry performers earn a top score, and scores of other companies are a percentage of the industry-
leading ROE performance. Game-To-Date scores are based on a weighted average of the annual ROE performances.
Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Wgt. Avg. Y10 Score G-T-D Score
(15.0) (15.0) (15.0) (15.0) (15.0) (15.0) (15.0) (15.0) (15.0) (15.0) (15.0) I.E. B-I-I I.E. B-I-I

A 0.0 20 20 20 20 A
B 0.0 20 20 20 20 B
C 0.0 20 20 20 20 C
D 0.0 20 20 20 20 D
E 0.0 20 20 20 20 E
F 0.0 20 20 20 20 F
G 0.0 20 20 20 20 G
H 0.0 20 20 20 20 H
I 0.0 20 20 20 20 I
J 0.0 20 20 20 20 J
K 0.0 20 20 20 20 K
L 0.0 20 20 20 20 L

Stock Price ($ per share)

Stock Price scores are based on a 20% or 20 point weighting. Bold numbers indicate achievement of the investor-expected stock price
shown below each yearly column head. Best-In-Industry performers earn a top score, and scores of other companies are a percentage of
the industry-leading performance. Game-To-Date scores are based solely on the most recent year's stock price.
Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y10 Score G-T-D Score
(32.00) (34.25) (36.75) (39.25) (42.00) (44.25) (46.25) (48.75) (51.25) (53.50) I.E. B-I-I I.E. B-I-I

A 20 20 20 20 A
B 20 20 20 20 B
C 20 20 20 20 C
D 20 20 20 20 D
E 20 20 20 20 E
F 20 20 20 20 F
G 20 20 20 20 G
H 20 20 20 20 H
I 20 20 20 20 I
J 20 20 20 20 J
K 20 20 20 20 K
L 20 20 20 20 L

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INDUSTRY 33 COMPANY PERFORMANCE OVERVIEW YEAR 10

(concluded)

Credit Rating
Credit Rating scores are based on a 20% or 20 point weighting. Bolded credit ratings indicate meeting or beating the B+ investor expectation
shown below each column head. For the Best- In-Industry scoring, companies with an A+ credit rating earn a score of 20 points and lesser
credit ratings earn lower scores. Game-To-Date scores are based soley on the most recent year's credit rating.
Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y10 Score G-T-D Score
(B+) (B+) (B+) (B+) (B+) (B+) (B+) (B+) (B+) (B+) I.E. B-I-I I.E. B-I-I

A 20 20 20 20 A
B 20 20 20 20 B
C 20 20 20 20 C
D 20 20 20 20 D
E 20 20 20 20 E
F 20 20 20 20 F
G 20 20 20 20 G
H 20 20 20 20 H
I 20 20 20 20 I
J 20 20 20 20 J
K 20 20 20 20 K
L 20 20 20 20 L

Image Rating
Image Rating scores are based on a 20% or 20 point weighting. Bolded image ratings indicate meeting or beating the yearly target shown
below each column head. Best-In-Industry performers earn top scores; scores of other companies are a percentage of the industry-leading
image rating. Game-To-Date scores are based on company's average image rating over the last three years.
Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y8-Y10 Y10 Score G-T-D Score
(70) (70) (70) (70) (70) (70) (70) (70) (70) (70) Average I.E. B-I-I I.E. B-I-I

A 0 20 20 20 20 A
B 0 20 20 20 20 B
C 0 20 20 20 20 C
D 0 20 20 20 20 D
E 0 20 20 20 20 E
F 0 20 20 20 20 F
G 0 20 20 20 20 G
H 0 20 20 20 20 H
I 0 20 20 20 20 I
J 0 20 20 20 20 J
K 0 20 20 20 20 K
L 0 20 20 20 20 L

Corporate Social Responsibility and Citizenship

Industry 33 Expenditures for Corporate Image Rating Points
Social Responsibility and Citizenship Generated from
Total ($000s) Per Pair Sold ($/unit) CSRC Expenditures
High Avg. Low High Avg. Low High Avg. Low

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INDUSTRY33 BONUS POINT AWARDS YEAR10

BULL'S EYE AWARD One bonus point added to any company's game-to-date score when actual
performance on Total Revenues and Earnings Per Share vary by no more
for Accurately Forecasting Total Revenues, than 5% from projected performance AND when Image Rating varies by no
Earnings Per Share, and Image Rating more than 4 points from the projected image rating.

Revenues(within ± 5%) EPS(within ± 5% or ± 10¢) Image Rating (within ± 4 points) Year 10 Cumu-
Year 10 Year 10 Percent Year 10 Year 10 Percent Year 10 Year 10 —Variance— Bull's Eye lative
Forecast Actual Variance Forecast Actual Variance Forecast Actual Pts. Percent Award Awards
A 0 0 0.0 % 0.00 0.00 0.0 % 0 0 0 0.0 % No 0 A
B 0 0 0.0 % 0.00 0.00 0.0 % 0 0 0 0.0 % No 0 B
C 0 0 0.0 % 0.00 0.00 0.0 % 0 0 0 0.0 % No 0 C
D 0 0 0.0 % 0.00 0.00 0.0 % 0 0 0 0.0 % No 0 D
E 0 0 0.0 % 0.00 0.00 0.0 % 0 0 0 0.0 % No 0 E
F 0 0 0.0 % 0.00 0.00 0.0 % 0 0 0 0.0 % No 0 F
G 0 0 0.0 % 0.00 0.00 0.0 % 0 0 0 0.0 % No 0 G
H 0 0 0.0 % 0.00 0.00 0.0 % 0 0 0 0.0 % No 0 H
I 0 0 0.0 % 0.00 0.00 0.0 % 0 0 0 0.0 % No 0 I
J 0 0 0.0 % 0.00 0.00 0.0 % 0 0 0 0.0 % No 0 J
K 0 0 0.0 % 0.00 0.00 0.0 % 0 0 0 0.0 % No 0 K
L 0 0 0.0 % 0.00 0.00 0.0 % 0 0 0 0.0 % No 0 L

Comparisons and Trends in Projected Versus Actual Variances

Range of Average Percent Variances (for Revenues, EPS, and Image Rating) for all Industry 12
Companies, World-Wide Average Percent Variance, and Company G Average Percent Variance

Industry High/Low Company G Average World Average

100%

50%

0%

-50%

-100%
Year 11 Year 10

Year

LEAP FROG AWARD Beginning in Year 12, one bonus point is added to the game-to-date overall
score of the company whose current-year overall score is most improved
for Most Improved Overall Score over the prior year. If all companies fail to improve their scores from one
(current year to current year) year to the next, then no Leap Frog bonus is awarded.

Current-Year Scores
Δ = net change in score between years Highlighted figure = Leap Frog Award winner Cumu-
Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 lative
Score Δ Score Δ Score Δ Score Δ Score Δ Score Δ Score Δ Score Δ Score Δ Score Awards
A 0 0 0 A
B 0 0 0 B
C 0 0 0 C
D 0 0 0 D
E 0 0 0 E
F 0 0 0 F
G 0 0 0 G
H 0 0 0 H
I 0 0 0 I
J 0 0 0 J
K 0 0 0 K
L 0 0 0 L

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INDUSTRY 33 FOOTWEAR INDUSTRY OVERVIEW YEAR 10

Base —Y10 Price Adjustments for— Year 10
Materials Prices ($/pair) Price Mat. Usage Cap. Utilization Price Notes
Standard Materials 6.00 0.00 0.00 6.00 Higher than normal (50.0%) superior materals usage lead to superior
materials prices that were 0.0% below the base and standard materials
Superior Materials 12.00 0.00 0.00 12.00 prices that were 0.0% below the base.

N.A. E-A A-P L.A. All

Footwear Production (industry totals) Plants Plants Plants Plants Plants Notes
Total Year 10 Production (000s of pairs) 25,824 0 42,324 0 68,148  Total pairs produced before rejects
Pairs Rejected 1,260 0 2,928 0 4,188  Overall average reject rate = 6.1%
Net Year 10 Production (000s of pairs) 24,564 0 39,396 0 63,960  Total pairs available after rejects
Superior Materials Usage 48.8% 0.0% 50.8% 0.0% 50.0%  % usage unchanged from Y9
Capacity Utilization (branded + private-label) 107.6% 0.0% 88.2% 0.0% 94.7%  % utilization unchanged from Y9

Branded Warehouses (industry totals) N.A. E-A A-P L.A. All

Region Region Region Region Regions Notes
Ending Y9 Inventories (000s of pairs) 144 144 96 96 480  Unsold pairs from Y9
Less Pairs Cleared (inventory clearance) 0 0 0 0 0  Average inventory clearance of 0.0%
Beginning Y10 Inventories 144 144 96 96 480  Incurred a 1-star S/Q rating penalty
Plus New Pairs Produced in Y10 16,524 16,524 11,016 11,016 55,080  New Y10 production shipped from plants

Pairs Available for Sale in Year 10 16,668 16,668 11,112 11,112 55,560  2.9% higher than Y10 demand

N.A. E-A A-P L.A. All

Branded Demand & Sales (industry tot.)
Market Market Market Market Market Notes
Projected Y10 Demand (000s of pairs) 16,200 16,200 10,800 10,800 54,000  From page 4 of FIR for Year 9
Actual Year 10 Demand 16,200 16,200 10,800 10,800 54,000  Actual demand was 0.0% lower than pro-
jected demand due to decreased com-
Branded Pairs Sold (internet + wholesale) 16,200 16,200 10,800 10,800 54,000 petitive intensity.
No. of Companies Unable to Fill All Orders
{
not meaningful Shows extent to which orders for brand-
ed pairs went unfilled due to inventory
Unfilled Orders (000s of pairs ordered but not shipped) shortages at one or more companies.

Demand Forecast (industry totals) N.A. E-A A-P L.A. All

Market Market Market Market Market Notes
Branded Demand ————————– Year 11 17,172 17,172 11,880 11,880 58,104 Global demand for Y11-Y15 is expecrted to
(internet + wholesale) grow at a rate of 7%-9% annually, slowing to
Year 12 18,202 18,202 13,086 13,086 62,575 about 5%-7% annual growth during Y16-Y20.
Year 13 19,294 19,294 14,375 14,375 67,338 The projected growth rates are not the same
for all four regions, as indicated in the table on
Private-Label Demand —————– Year 11 2,400 2,400 2,400 2,400 9,600 page 4 of the Player's Guide. Actual demand
growth may vary from the forecast due to
Year 12 2,640 2,640 2,640 2,640 10,560 increases/decreases in competitive intensity
Year 13 2,940 2,940 2,940 2,940 11,760 industry-wide.

Potential Y11 Footwear Supply
Beginning Y11 Inventory
Potential Production (with OT)
Potential Global Supply
Expected Y11 Footwear Demand
1,560 Branded Demand Forecast
86,400 Private-Label Forecast
87,960 Potential Global Demand
Supply / Demand Analysis
58,104 Excess supply of 29.9% is likely to boost competitive
pressures in Year 11 significantly. Industry-wide, there is
9,600 enough production capacity to meet demand and absorb
demand growth for several years to come. New capacity
67,704 construction is currently not needed.

Plant Capacity (000s of pairs of production capacity not including overtime) New Con-
struction
Capacity Beginning Year 10 Capacity Purchased (Sold) Capacity Available for Y10 Production Initiated
N.A. E-A A-P L.A. N.A. E-A A-P L.A. N.A. E-A A-P L.A. Total in Y10
A 2,000 0 4,000 0 0 0 0 0 2,000 0 4,000 0 6,000 0 A
B 2,000 0 4,000 0 0 0 0 0 2,000 0 4,000 0 6,000 0 B
C 2,000 0 4,000 0 0 0 0 0 2,000 0 4,000 0 6,000 0 C
D 2,000 0 4,000 0 0 0 0 0 2,000 0 4,000 0 6,000 0 D
E 2,000 0 4,000 0 0 0 0 0 2,000 0 4,000 0 6,000 0 E
F 2,000 0 4,000 0 0 0 0 0 2,000 0 4,000 0 6,000 0 F
G 2,000 0 4,000 0 0 0 0 0 2,000 0 4,000 0 6,000 0 G
H 2,000 0 4,000 0 0 0 0 0 2,000 0 4,000 0 6,000 0 H
I 2,000 0 4,000 0 0 0 0 0 2,000 0 4,000 0 6,000 0 I
J 2,000 0 4,000 0 0 0 0 0 2,000 0 4,000 0 6,000 0 J
K 2,000 0 4,000 0 0 0 0 0 2,000 0 4,000 0 6,000 0 K
L 2,000 0 4,000 0 0 0 0 0 2,000 0 4,000 0 6,000 0 L
24,000 0 48,000 0 0 0 0 0 24,000 0 48,000 0 72,000 0

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INDUSTRY 33 FINANCIAL PERFORMANCE SUMMARY YEAR 10

Income Statement Data ($000s) Total Shares

Dividend of Stock
Net Sales Cost of Warehouse Marketing Admin Operating Interest Income Net Payment (000s of shares
Revenues Pairs Sold Expenses Expenses Expenses Profit Exp (Inc) Taxes Profit ($000s) outstanding)

A 239,147 136,417 15,286 34,374 7,800 45,270 9,556 10,714 25,000 10,000 10,000 A
B 239,147 136,417 15,286 34,374 7,800 45,270 9,556 10,714 25,000 10,000 10,000 B
C 239,147 136,417 15,286 34,374 7,800 45,270 9,556 10,714 25,000 10,000 10,000 C
D 239,147 136,417 15,286 34,374 7,800 45,270 9,556 10,714 25,000 10,000 10,000 D
E 239,147 136,417 15,286 34,374 7,800 45,270 9,556 10,714 25,000 10,000 10,000 E
F 239,147 136,417 15,286 34,374 7,800 45,270 9,556 10,714 25,000 10,000 10,000 F
G 239,147 136,417 15,286 34,374 7,800 45,270 9,556 10,714 25,000 10,000 10,000 G
H 239,147 136,417 15,286 34,374 7,800 45,270 9,556 10,714 25,000 10,000 10,000 H
I 239,147 136,417 15,286 34,374 7,800 45,270 9,556 10,714 25,000 10,000 10,000 I
J 239,147 136,417 15,286 34,374 7,800 45,270 9,556 10,714 25,000 10,000 10,000 J
K 239,147 136,417 15,286 34,374 7,800 45,270 9,556 10,714 25,000 10,000 10,000 K
L 239,147 136,417 15,286 34,374 7,800 45,270 9,556 10,714 25,000 10,000 10,000 L

239,147 136,417 15,286 34,374 7,800 45,270 9,556 10,714 25,000 10,000 10,000

Selected Balance Sheet Data ($000s) Dividend Data

Shareholder Equity Year 10 No. of
Cash Current Total Current Long-Term Beginning Stock Sales Earnings Ending Dividend Changes
on Hand Assets Assets Liabilities Debt Equity (purchases) Retained Equity ($ / share) (+/–)

A 5,000 68,229 264,229 29,079 83,400 136,750 0 15,000 151,750 1.00 0/0 A
B 5,000 68,229 264,229 29,079 83,400 136,750 0 15,000 151,750 1.00 0/0 B
C 5,000 68,229 264,229 29,079 83,400 136,750 0 15,000 151,750 1.00 0/0 C
D 5,000 68,229 264,229 29,079 83,400 136,750 0 15,000 151,750 1.00 0/0 D
E 5,000 68,229 264,229 29,079 83,400 136,750 0 15,000 151,750 1.00 0/0 E
F 5,000 68,229 264,229 29,079 83,400 136,750 0 15,000 151,750 1.00 0/0 F
G 5,000 68,229 264,229 29,079 83,400 136,750 0 15,000 151,750 1.00 0/0 G
H 5,000 68,229 264,229 29,079 83,400 136,750 0 15,000 151,750 1.00 0/0 H
I 5,000 68,229 264,229 29,079 83,400 136,750 0 15,000 151,750 1.00 0/0 I
J 5,000 68,229 264,229 29,079 83,400 136,750 0 15,000 151,750 1.00 0/0 J
K 5,000 68,229 264,229 29,079 83,400 136,750 0 15,000 151,750 1.00 0/0 K
L 5,000 68,229 264,229 29,079 83,400 136,750 0 15,000 151,750 1.00 0/0 L

5,000 68,229 264,229 29,079 83,400 136,750 0 15,000 151,750 1.00 0.0 / 0.0

Selected Financial and Operating Statistics Credit Rating Data

Costs and Profit as a Percent of Net Revenues Interest Debt to Default
Cost of Whse. Mktng. Admin Operating Net Current Days of Coverage Assets Risk Default
Pairs Sold Expenses Expenses Expenses Profit Profit Ratio Inventory Ratio Ratio Ratio Risk
A 57.0% 6.4% 14.4% 3.3% 19.1% 4.1% 2.35 11 4.74 0.38 1.70 Medium A
B 57.0% 6.4% 14.4% 3.3% 19.1% 4.1% 2.35 11 4.74 0.38 1.70 Medium B
C 57.0% 6.4% 14.4% 3.3% 19.1% 4.1% 2.35 11 4.74 0.38 1.70 Medium C
D 57.0% 6.4% 14.4% 3.3% 19.1% 4.1% 2.35 11 4.74 0.38 1.70 Medium D
E 57.0% 6.4% 14.4% 3.3% 19.1% 4.1% 2.35 11 4.74 0.38 1.70 Medium E
F 57.0% 6.4% 14.4% 3.3% 19.1% 4.1% 2.35 11 4.74 0.38 1.70 Medium F
G 57.0% 6.4% 14.4% 3.3% 19.1% 4.1% 2.35 11 4.74 0.38 1.70 Medium G
H 57.0% 6.4% 14.4% 3.3% 19.1% 4.1% 2.35 11 4.74 0.38 1.70 Medium H
I 57.0% 6.4% 14.4% 3.3% 19.1% 4.1% 2.35 11 4.74 0.38 1.70 Medium I
J 57.0% 6.4% 14.4% 3.3% 19.1% 4.1% 2.35 11 4.74 0.38 1.70 Medium J
K 57.0% 6.4% 14.4% 3.3% 19.1% 4.1% 2.35 11 4.74 0.38 1.70 Medium K
L 57.0% 6.4% 14.4% 3.3% 19.1% 4.1% 2.35 11 4.74 0.38 1.70 Medium L

57.0% 6.4% 14.4% 3.3% 19.1% 4.1% 2.35 10,000 4.74 0.38 1.70 Medium

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INDUSTRY 33 INDUSTRY PERFORMANCE BENCHMARKS YEAR 10

—————————— Year 9 —————————— —————————— Year 10 ——————————

Plant and Production Benchmarks Low Average High Co. G Low Average High Co. G
Materials Costs ———— Branded Footwear 9.87 9.87 9.87 9.87 9.87 9.87 9.87 9.87
($ per pair produced)
Private-Label Footwear 7.91 7.91 7.91 7.91 7.91 7.91 7.91 7.91
Labor —— North ———– Total Compensation ($/year) 20,100 20,100 20,100 20,100 20,100 20,100 20,100 20,100
America Productivity (pairs/worker/year) 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000
Labor Cost ($ per pair produced) 5.21 5.21 5.21 5.21 5.21 4.93 4.93 5.21
Europe ——– Total Compensation ($/year) 0 0 0 0 0 0 0 0
Africa Productivity (pairs/worker/year) 0 0 0 0 0 0 0 0
Labor Cost ($ per pair produced) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Asia ————– Total Compensation ($/year) 3,700 3,700 3,700 3,700 3,700 3,700 3,700 3,700
Pacific Productivity (pairs/worker/year) 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
Labor Cost ($ per pair produced) 1.60 1.60 1.60 1.60 1.60 1.60 1.60 1.60
Latin ———— Total Compensation ($/year) 0 0 0 0 0 0 0 0
America Productivity (pairs/worker/year) 0 0 0 0 0 0 0 0
Labor Cost ($ per pair produced) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TQM / 6-Sigma Expenditures ———— Current Year 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
($ per pair of capacity) Cumulative 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
Reject Rates —————— Branded Production 6.3% 6.3% 6.3% 6.3% 6.3% 6.3% 6.3% 6.3%
(%) Private-Label Production 5.1% 5.1% 5.1% 5.1% 5.1% 5.1% 5.1% 5.1%
Total Manufacturing ———— Branded —————– N.A. 26.02 26.02 26.02 26.02 26.02 26.02 26.02 26.02
Cost ($/pair produced) E-A 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
A-P 21.16 21.16 21.16 21.16 21.16 21.16 21.16 21.16
L.A. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Private-Label ——– N.A. 22.27 22.27 22.27 22.27 22.27 22.27 22.27 22.27
E-A 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
A-P 19.44 19.44 19.44 19.44 19.44 19.44 19.44 19.44
L.A. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

—————————— Year 9 —————————— —————————— Year 10 ——————————

Operating Benchmarks Low Average High Co. G Low Average High Co. G
Branded ——— Cost of Pairs Sold ———————— N.A. 26.59 26.59 26.59 26.59 26.59 26.59 26.59 26.59
Market ($ per pair sold. Includes manu- E-A 26.98 26.98 26.98 26.98 26.98 26.98 26.98 26.98
Segments facturing, shipping, import tariffs,
and exchange rate adjustments.) A-P 21.92 21.92 21.92 21.92 21.92 21.92 21.92 21.92
L.A. 28.03 28.03 28.03 28.03 28.03 28.03 28.03 28.03
Warehouse Expenses ——– Internet 10.89 10.89 10.89 10.89 10.89 10.89 10.89 10.89
($ per pair sold) Wholesale 2.83 2.83 2.83 2.83 2.83 2.83 2.83 2.83
Marketing Expenses ——— Internet 22.19 22.19 22.19 22.19 22.19 22.19 22.19 22.19
($ per pair sold) Wholesale 6.87 6.87 6.87 6.87 6.87 6.87 6.87 6.87
Administrative Expenses ($/pair sold) 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73
Operating —— Internet ————– N.A. 22.75 22.75 22.75 22.75 22.75 22.75 22.75 22.75
Profit E-A 22.60 22.60 22.60 22.60 22.60 22.60 22.60 22.60
($/pair sold)
A-P 28.53 28.53 28.53 28.53 28.53 28.53 28.53 28.53
L.A. 21.96 21.96 21.96 21.96 21.96 21.96 21.96 21.96
Wholesale ——— N.A. 8.97 8.97 8.97 8.97 8.97 8.97 8.97 8.97
E-A 8.82 8.82 8.82 8.82 8.82 8.82 8.82 8.82
A-P 8.18 8.18 8.18 8.18 8.18 8.18 8.18 8.18
L.A. 2.61 2.61 2.61 2.61 2.61 2.61 2.61 2.61
Private ———— Cost of Pairs Sold ———————– N.A. 23.27 23.27 23.27 23.27 23.27 23.27 23.27 23.27
Label ($ per pair sold. Includes manu- E-A 25.44 25.44 25.44 25.44 25.44 25.44 25.44 25.44
Market facturing, shipping, import tariffs,
Segments and exchange rate adjustments.) A-P 20.44 20.44 20.44 20.44 20.44 20.44 20.44 20.44
L.A. 24.27 24.27 24.27 24.27 24.27 24.27 24.47 24.27
Warehouse Expenses ($ per pair sold) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Margin Over Direct ———————– N.A. 10.73 10.73 10.73 10.73 10.73 10.73 10.73 10.73
Cost ($ per pair sold) E-A 8.56 8.56 8.56 8.56 8.56 8.56 8.56 8.56
A-P 13.56 13.56 13.56 13.56 13.56 13.56 13.56 13.56
L.A. 9.73 9.73 9.73 9.73 9.73 9.73 9.73 9.73

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INDUSTRY 33 CELEBRITY ENDORSEMENTS AND INDUSTRY TRENDS YEAR 10

Celebrity Endorsements
Consumer Appeal Currently Contract Year Contract Most Recent Round of Bidding
Celebrity NA EA AP LA Signed By ($000s/year) Signed Length Bidders High Bid 2nd Bid Avg Bid Low Bid
Payton Manyon 85 45 35 40 [unsigned] 0 N/A 2 years 0 0 0 0 0
Oprah Beyonsé 100 70 65 75 [unsigned] 0 N/A 3 years 0 0 0 0 0
Cristiano Romano 70 100 70 55 [unsigned] 0 N/A 5 years 0 0 0 0 0
Tiger Green 95 80 85 75 [unsigned] 0 N/A 2 years 0 0 0 0 0
José Montaña 60 50 60 95 [unsigned] 0 N/A 3 years 0 0 0 0 0
Mishell Wii 55 60 95 90 [unsigned] 0 N/A 4 years 0 0 0 0 0
Ace Federar 50 90 50 85 [unsigned] 0 N/A 1 years 0 0 0 0 0
Danica Sebastian 70 65 55 60 [unsigned] 0 N/A 3 years 0 0 0 0 0
Yi Lin 75 80 95 50 [unsigned] 0 N/A 4 years 0 0 0 0 0
Shakira Iglesias 45 85 60 100 [unsigned] 0 N/A 2 years 0 0 0 0 0
Nick Shavan 80 85 75 70 [unsigned] 0 N/A 3 years 0 0 0 0 0
Bronko Mars 60 35 100 50 [unsigned] 0 N/A 4 years 0 0 0 0 0

Branded Price and S/Q Rating Trends

NORTH AMERICA EUROPE-AFRICA

Internet P… Wholesal… S/Q Rating Internet P… Wholesal… S/Q Rating

$80 10 $80 10

$70 8 $70 8
Sales Price

Sales Price
S/Q Rating

S/Q Rating
$60 5 $60 5

$50 3 $50 3

$40 0 $40 0
10 11 12 13 14 15 16 17 18 19 20 10 11 12 13 14 15 16 17 18 19 20
Year Year

ASIA-PACIFIC LATIN AMERICA

Internet P… Wholesal… S/Q Rating Internet P… Wholesal… S/Q Rating

$80 10 $80 10

$70 8 $70 8
Sales Price

Sales Price
S/Q Rating

S/Q Rating

$60 5 $60 5

$50 3 $50 3

$40 0 $40 0
10 11 12 13 14 15 16 17 18 19 20 10 11 12 13 14 15 16 17 18 19 20
Year Year

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